Maintenance fee - what does it cover? (Honolulu: real estate, lease)

[MDman123]

I have been looking at real estate listings of single family houses in Oahu, and I noticed that many of them have high maintenance fees, some as high as $500 per month. I wonder what those fees cover. They are distinct from association fees. Can Oahu residents enlighten me?

Thanks.

Gary
Non-resident for now

[thisbloominglife]

Gary,

I'm no expert by any means but in checking on a a few places myself I have found tha it varies from property to property. It could be anything, really - from utilities to road/neighborhood maintenance to somethon totally different. I've always just sent a request for info to the realtor. Also, just as an FYI if you are like me (who, in the beginning had no idea such a thing existed!) be aware that many Hawaiian properties are Lease Hold properties; the meaning of which, in a teeny little nut shell, is that basically you will not own the propery outright - not the land parcel it sits on any way.

Good luck!

[thisbloominglife]

Gary,

I'm no expert by any means but in checking on a a few places myself I have found tha it varies from property to property. It could be anything, really - from utilities to road/neighborhood maintenance to somethon totally different. I've always just sent a request for info to the realtor. Also, just as an FYI if you are like me (who, in the beginning had no idea such a thing existed!) be aware that many Hawaiian properties are Lease Hold properties; the meaning of which, in a teeny little nut shell, is that basically you will not own the propery outright - not the land parcel it sits on any way.

Good luck!

[isaackko]

hey man, I live here and am looking at real estate all the time so I've become somewhat familiar.

go to Hawaii Real Estate Central - Honolulu Board of REALTORS® and look at the listings. It typically says what the maintenance includes. Note that there are some listings on this site that are active, but the unit is already in escrow.

Almost everywhere you get water, sewer, and association fees included. Some include hot water, electricity, or cable, but it really depends.

[KonaKat]

Originally Posted by thisbloominglife

Gary,

I'm no expert by any means but in checking on a a few places myself I have found tha it varies from property to property. It could be anything, really - from utilities to road/neighborhood maintenance to somethon totally different. I've always just sent a request for info to the realtor. Also, just as an FYI if you are like me (who, in the beginning had no idea such a thing existed!) be aware that many Hawaiian properties are Lease Hold properties; the meaning of which, in a teeny little nut shell, is that basically you will not own the propery outright - not the land parcel it sits on any way.

Good luck!

Actually, in leasehold properties, you own the improvements and you lease the land from the owner. There are also many fee simple properties out there wherein you do own the land.

[thisbloominglife]

Kona,

Right! I wasn't meaning to make it sound as if FS properties don't exist (as they absolutely do); just wanted to make the OP aware tha LH also exist (in case they were not before). :-)

[winkosmosis]

That is an insane monthly fee! Unless the house is worth a lot, that basically obliterates any appreciation so it's not an investment

[MDman123]

I sent an email to a Realtor on Oahu and asked about the maintenance fees. She replied that they are usually charged by CPR-style developments. CPR stands for "condominium property regime". A CPR property can be not only an unit in a high-rise condominium building but also a house in a planned development in which the condominium management or homeowners association rather than individual property owners pays for some or all of the utilities and ground maintenance expenses. Each property owner then pays the management or HOA a share of the expenses every month. The maintenance fee may include one or more of the following expenses:
Cable TV
Internet Cable
Public Water
Telephone
Electricity
Sewer
Road maintenance

These are not included in the association fees.

I don't like this at all! It means frugal and absent residents are subsidizing profligate residents. It can also mean that if a resident wants to use an alternative cable, telephone, or electric service, he would have to pay for it in addition to the mandatory maintenance fee. Fortunately, there are plenty of houses on Oahu that have low or no maintenance fees.

Gary

[winkosmosis]

Originally Posted by MDman123

I sent an email to a Realtor on Oahu and asked about the maintenance fees. She replied that they are usually charged by CPR-style developments. CPR stands for "condominium property regime". A CPR property can be not only an unit in a high-rise condominium building but also a house in a planned development in which the condominium management or homeowners association rather than individual property owners pays for some or all of the utilities and ground maintenance expenses. Each property owner then pays the management or HOA a share of the expenses every month. The maintenance fee may include one or more of the following expenses:
Cable TV
Internet Cable
Public Water
Telephone
Electricity
Sewer
Road maintenance

These are not included in the association fees.

I don't like this at all! It means frugal and absent residents are subsidizing profligate residents. It can also mean that if a resident wants to use an alternative cable, telephone, or electric service, he would have to pay for it in addition to the mandatory maintenance fee. Fortunately, there are plenty of houses on Oahu that have low or no maintenance fees.

Gary

Sounds like a terrible deal. All of those utilities are probably cheaper than $500. Just another contract giving someone else control over your money and your life.